THAILAND. Airports of Thailand (AOT) has reported a -6.7% fall in non-aeronautical revenue for the nine months ended 30 June, with the figure reaching THB25.2 billion (US$780 million). Within this, concession income slid -9.6% to THB16 billion (US$495 million).
The figures show the continuing impact of the move by the Ministry of Finance to scrap arrivals duty-free shopping across the country’s airports from 1 August last year, alongside a challenging market for spending in departures duty-free.
Total AOT revenue climbed just over +3% to THB52.3 billion (US$1.61 billion) in the nine months. Net profit fell -4.2% to THB14.6 billion (US$452 million).
Thailand’s six major airports served 97.2 million passengers in the nine-month period, an increase of +7.9% year-on-year. This included 59.5 million international passengers and 37.8 million on domestic routes.
The airports company noted that while passenger numbers on China routes had risen +3.3% in the financial year to date, traffic and flight volumes have fallen since February.
AOT said, “Government policies should be closely monitored to determine and implement appropriate strategies to sustainably strengthen the potential of the Chinese tourist market. Indian and Russian tourists are likely to continue to visit Thailand in increasing numbers.”
In the three-month period ended 30 June, non-aeronautical revenues fell by just over -8% to THB7.8 billion (US$244 million), with concession income down -10.7% to THB5.175 billion (US$160.4 million).
As reported, King Power Duty Free has entered discussions related to the severe financial pressures it faces with its three duty-free concessions at:
1) Suvarnabhumi Airport;
2) Don Mueang International Airport;
3) Phuket International, Chiang Mai International and Hat Yai International airports.
AOT recently appointed a working group to look at possible solutions, along with taking on consultancy services from a public higher education institution to conduct a study of possible options.
In its nine-month results statement, AOT said it is awaiting the findings of a study into solution options to be proposed to the AOT Board of Directors. It noted that it retains “the right to collect concession revenues according to the terms and conditions of concession contracts, while waiting for the findings of study on solution options”. ✈
